Straight-Line, Modified Half-Year Calculation

The calculation for the straight-line, half-year method is the same as for the regular straight-line (method SL), except for the modified half-year averaging convention.

When calculating depreciation under this method for property type V, vintage account property, there is no adjustment to the depreciable basis for salvage value. However, the asset cannot be depreciated below its salvage value. This alternate salvage treatment is applied automatically only to those assets with V for property type.